Affordable Insurance Plan For Young Adults

New Options, Available In Some States, Target "Young Invincibles"

(CBS)  Twenty-seven year old Jamie Doerr is a waitress who moved to New York City with dreams of being an actress and very little cash. She rarely thought about health insurance, reports CBS News correspondent Priya David.

"I just can't afford independent health insurance right now," Doerr said.

Insurers call people like Doerr the "young invincibles" - 19 to 29 year olds who don't get health insurance with their jobs and don't carry individual coverage, often because they consider it a major expense they can live without. Across America, there are 13.2 million "young invincibles," who make up 30 percent of all uninsured - a number that's expected to climb in this economy.

"With more and more people losing their jobs, people are really having trouble maintaining their health insurance," said Karyn Schwartz, with the Kaiser Family Foundation.

But the average monthly premium for private insurance for this age group is $400 to $500 per month - too pricey for many young people just making a start.

"I don't forsee in my future being able to pay for independent health insurance for a long time," Doerr said.

But opting out could be an even costlier option. According to the CDC, young adults have the highest rate of injury-related emergency room visits of all age groups - 46 percent of young uninsured adults reported having medical debt as a result.

To entice more young people to purchase health insurance - one company is offering far cheaper plans in a handful of states including in California.

"Those people that choose to go uninsured are literally putting their financial futures at risk," said Richard White, a vice president with Wellpoint Blue Cross Blue Shield. "They're literally one accident away from having their future impacted by a costly accident."

White oversees a plan specifically designed to attract "young invincibles." Called Tonik, the plan offers three low-cost options, ranging from $70 to $120 per month, which all include basic preventative care.

It allows four doctor and emergency room visits annually with low co-payments, and dental and vision coverage. For anything else, there's a high deductible of $5,000. Steep - but catastrophic injury or disease care can run into the tens of thousands.

It was enough to lure Joe Sanroman, a framing contractor from California, who spend his early 20s without health insurance.

"It's worth it to pay that little bit of money a month and then be OK, be able to go to the doctor when you need to," Sanroman said.

So far Tonik is only available in six states, but the company is working to expand into all 15 states where Blue Cross Blue Shield already operates, including New York.

"I'm not a doctor," Doerr said. "I don't know if I'm really sick. And I don't want it to get to the point where one day, I finally go in and they're like it's too late."

A fear Doerr feels she can't escape, because, for her, the price tag for health insurance remains out of reach.

[indykyra]

Each state's department of insurance has its own laws regarding how insurers handle pre-existing conditions. Just looking at my state of residence, there are laws that have been enacted since 1991 to define exactly that, so yes laws have changed, and also premiums have changed. My company has been deliberately trying to lower premiums to attract customers. Again though, I would have a hard time believing the "average" premium of $400 - $500/month quoted in this article was because of pre-existing conditions. Again, where's the data to back this stat?

[i-care]

Good story.
Please be informed that Kaiser Permanente also offers an insurance plan for young people for about $250/month.

[erasmus111]

by IThoughtItWasFunnyAsIs June 21, 2009 4:56 AM PDT
We may be the only country on the planet that doesn't provide universal health care, but then every country that does is rationing health care, and trying to find ways to get out of paying, just like insurance companies do.


Like ususal, you are full of cr*p. There is no rationing here, and no one trying to get out of paying.

[aChangeOfIdeas]

by indykyra June 21, 2009 : I work for a company that provides individual health insurance in most states. I don't know where Priya David gets her statistic that health insurance costs $400 to $500/month (I would like to have the source of that data please). We have many plans under $100/month and even under $50/month for a 25-year-old in states across the country.

I'm just curious if this is only for folks with absolutely no "pre-existing conditions". I tried to get individual health insurance at the age of 23. Newly divorced, I had seen a counselor perhaps four or five sessions, paid for that out of my pocket, had no other "pre-existing conditions" of any sort. Many companies turned me down completely. The best "deal" I could get was a plan that excluded all mental health coverage (OK, because of the counseling, thanks) and cost $3600 a year. That was in 1991. Hard to pay for making $12/hr. Pray tell, have prices on health insurance gone down???

[Kintari]

30% of the uninsured are that way by choice,and have an affordable private option. Another 20% of uninsured are eligible for Medicare. Holy Crap!! I think I just saved us 1/2 trillion dollars.

[ubrew12]

Its heartwarming to read about insurance companies working hard to insure people who don't need it.

My friends daughter got thyroid cancer and had to have surgery. For some reason, this enthusiasm for insuring the young no longer extends to her, though she's only 25. She has great difficulty getting insured, and its horribly expensive.

[bobford5]

The young "invincibles" will not buy insurance NO MATTER WHAT IT COSTS!!!! I worked for an electrical contractor. We offered health insurance at $4.00, that's right, four dollars, a week. That was a six pack or a pack of cigarettes to the younger employees, and those were more important. We finally ended up giving it to all the singles so we could continue to have ot for our families. It does not matter what you do, unless it is both affordable and MANDATORY, many will not take it.

[indykyra]

I work for a company that provides individual health insurance in most states. I don't know where Priya David gets her statistic that health insurance costs $400 to $500/month (I would like to have the source of that data please). We have many plans under $100/month and even under $50/month for a 25-year-old in states across the country. I just got a quote online for my zip code and there was a plan as low as $40/month. People can't afford that??? That's less than a cell phone bill. And in a lot of those states you can add dental and vision and still keep your premium low. Each state's department of insurance approves what is offered by our company so why isn't that enough government without getting the federal government involved?

[imalexdude]

My dad is 50 years old and still doesn't have any medical insurance. Why would I want to pay ridiculous amounts of money for something I don't need? You literally save hundreds of thousands of dollars if you just pay the bills yourself and not waste your money on health insurance. It's such a scam. Instead of universal healthcare, why doesn't the government just subsidize hospital bills so people can afford to pay them off without huge amounts of interest being tacked on?

[ubrew12]

Instead of universal healthcare, why doesn't the government just subsidize hospital bills so people can afford to pay them off without huge amounts of interest being tacked on?'

Thats what health insurance is. The question is: should it be administered by competing private corporations or, as in Canada, should the gov't just insure everyone and administer it itself. We adopted the 'corporate-friendly' plan 30 years ago thinking that it would be cheaper and more efficient. Other countries went a different route. Fast forward 30 years, ours is TWICE the cost of Canada's plan and results in 50 million uninsured, and according to the World Health Organization, we get inferior healthcare also. Its time to go 'single payer'. But neither party in Washington DC is promoting it, they are ALL in bed with the insurance executives.

[usa3world]

You can bet it covers very little and they would be underinsured like so many Americans are now! Hr676 now! Nothing else will work!

[jeff-fla]

What this really is, the insurance companies are afraid of Universal health care. So they know if something doesn't change quick they will be history. We do need to do something and fast. Try being handicapped and no having insurance.

[rushlimpdrug]

They will get old soon enough, then they'll run into
the same problems as old folks.

It is nice to see life with myopic vision. . . .
until the train hits you right in the kisser . . .
never saw it coming.

[Mac Steiger]

GREAT story, TOUCHING, excellent reporting CBS! Jamie Doerr is so very honest in expressing her need for saving $$$, but fear of getting REALLY sick. TONIC sounds excellent, and I'm a 60-year old, with an excellent retirement package, and lifetime medical for myself and my family.

AMERICA wake up, and take care of your young people!

CONGRATULATIONS on an excellent story on the CBS Evening News!

[janieanddeb]

I still cant get over how the Americans dont have Universal healthcare. the last werternized country to not have Universal healthcare
They call ours the Socialized medicare

The insurance companies must be racking in the money

[cydygitt1]

Myth: Canada's health care system is a cumbersome bureaucracy.

The U.S. has the most bureaucratic health care system in the world. More than 31 percent of every dollar spent on health care in the U.S. goes to paperwork, overhead, CEO salaries, profits, etc. The provincial single-payer system in Canada operates with just a 1 percent overhead. Think about it. It is not necessary to spend a huge amount of money to decide who gets care and who doesn't when everybody is covered.


Myth: Canada's government decides who gets health care and when they get it.

While HMOs and other private medical insurers in the U.S. do indeed make such decisions, the only people in Canada to do so are physicians. In Canada, the government has absolutely no say in who gets care or how they get it. Medical decisions are left entirely up to doctors, as they should be.

There are no requirements for pre-authorization whatsoever. If your family doctor says you need an MRI, you get one. In the U.S., if an insurance administrator says you are not getting an MRI, you don't get one no matter what your doctor thinks ? unless, of course, you have the money to cover the cost.

[roach9703]

$00 to 500 per month for this age group is truly crazy. However, this age group may want to consider high deductible major medial insurance. This can limit their losses to a level they can handle over time.